The provincial government is following up on an election promise with tax cuts in their new Saskatchewan Affordability Act.
"We're keeping a campaign commitment," said Miniser of Finance and MLA for Rosetown-Delisle Jim Reiter. "During the October election period, we campaigned on a package of affordability measures that if we were given the privilege of forming government, we would enact. We think it's very important you make a promise, you need to keep it."
The act includes what they're calling 13 affordability commitments, among them an income tax cut.
It comes from raising the personal exemption, spousal exemption, child exemptions and the seniors supplement by $500 a year, for the next four years.
"The income tax changes we think are extremely significant because we think people know best how to manage their own money," Reiter said. "If they can keep their money in their pockets to begin with, we think that's the appropriate way to deal with it. There's a number of other tax credits in there as well. We're increasing the Saskatchewan low-income tax credits, there's a disability tax credit, and caregiver tax credits. Those would be a little bit more targeted.
"Then there's some things for the future of the province. There's the graduate retention program tax credit, which has been in place, but which we're increasing. The act of families benefit which will help many people. There's actually one corporate and 12 personal income tax measures in this in this we think will help everyone in the province deal with inflationary pressures."
The province suggests these changes will allow a family of four earning $100,000 to save more than $3,400 over the next four years, while two seniors with a combined income of $75,000 will save more than $3,100. Eventually they're expecting the changes will mean 54,000 residents will no longer need to pay provincial income tax.
The changes come late in the year, but Reiter is hoping people will see the difference soon.
"We've sent a signed a letter yesterday to send to the federal government asking them to implement those for the tax tables starting January," he said. "We believe they can do that. There's usually a deadline to meet, and this is later because of the election, but we believe that they can do it. They did it for their own changes that they introduced last week. We're hopeful they'll do it for us as well. So hopefully by the end of January, people will be seeing what that deduction means on their paycheck. If they don't, it'll be kicked in a few months down the road, but it will still be retroactive, so it will still help people effective January 1st."
Some of the other initiatives include a five per cent increase annually for the Saskatchewan Low-Income Tax Credit, a 50 per cent increase to the Saskatchewan First-Time Homebuyers credit maximum benefit, and a home renovation tax credit of up to $420 per year.
The small business tax rate will remain at one per cent. the province says that will save over 35,000 small businesses in the province over $50 million in corporate income tax annually.
Reiter says he's keeping an eye to how these changes could impact provincial revenue needed for government programs.
"It's about taking a measured approach," he said. "Obviously we want to keep taxes as low as we possibly can, but we have to have money to operate, to provide education and healthcare and social services and highways and all the other services Saskatchewan people need. We're in the budget process right now and this will certainly be a part of the discussion."